Posted: March 5th, 2023

was attempting to develop its local economy

The city of Lancaster, California, was attempting to develop its local economy. Costco, the giant retailer, wanted to expand its store into the next-door space occupied by the 99 Cents Only Store, which leased the premises. Costco informed the city that it would move to another neighboring city if it could not expand. So Lancaster attempted to buy out the lease of the 99 Cents Only Store, but the store refused. Consequently, Lancaster used its eminent domain power to condemn the 99 Cents Only Store property in order to turn the property over to Costco. The city explained that blight might ensue if Costco left. The city also noted that the 99 Cents Only Store had generated only about $40,000 a year in sales taxes, whereas Costco had generated more than $400,000. The city is willing to pay fair market value for the property. Whereupon, the 99 Cents Only Store sued the city to block the taking, arguing that the city was acting unconstitutionally. What is the most accurate statement regarding this lawsuit?A.The city prevails since preventing blight, enhancing development, and increasing the tax base are legitimate rationales according to the Supreme Court for the government to exercise eminent domain.B.The city prevails since a city or any government entity can seize private property for any purpose so long as just compensation is paid.C.The 99 Cents Only Store prevails since eminent domain can only be used by government to seize property for airport construction or expansion.D.The 99 Cents Only Store prevails since anti-trust law will prevent a large "big-box" retailer from driving out a small business from a community.

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